Do parallel imported vehicles still require payment of purchase tax?
1 Answers
Parallel imported vehicles are subject to purchase tax. The purchase tax is a tax levied by tax authorities on the acquisition of specified goods and properties within the scope of the purchase tax system. Vehicle purchase tax is a type of tax imposed on entities and individuals who purchase designated vehicles within China, evolving from the vehicle purchase surcharge. The full name of parallel imported vehicles is parallel trade imported vehicles, abbreviated as parallel trade vehicles, referring to cars purchased by traders from overseas markets and introduced into the Chinese market for sale without authorization from the brand manufacturers. Due to different import origins, they can be classified into U.S. specification vehicles, Middle East version vehicles, Canadian version vehicles, European version vehicles, etc., to distinguish them from China specification vehicles sold through authorized channels.